Global Warming Compare And Contrast Essay

Global warming has become an increasingly popular topic for discussion among economists because of the human activity that is contributing to the rising pollution in today’s society. Economists such as William Nordhaus in his article, “After Kyoto: Alternative Mechanism to Control Global Warming,” have argued that a carbon tax is the most efficient form of action to reduce carbon emissions. On the other hand, other economists such as Robert Stavins argues in his article, “Addressing Climate Change with a Comprehensive U.S Cap and Trade System,” that a cap and trade system should be implemented instead of a carbon tax. While both of these market instruments have their strengths and weaknesses, another popular approach is combining these two market instruments into a hybrid approach with a cap and trade system complemented with a price floor or ceiling or maybe even both. I will analyze all three approaches and talk about each market instrument’s strengths and weaknesses. Afterwards, I will conclude …show more content…
This price volatility can be seen in the graph below. The graph below displays the price of sulfur dioxide and compares the prices with consumer prices and stock prices between the years 1994-2001. As you can see for yourself, the price of sulfur dioxide becomes very volatility compared to consumer prices and stock prices. Taking this into consideration, price volatility should be a factor when discussing climate change policies to slow down global